Refunds under GST: ALL YOU NEED TO KNOW
Situations under which case of refund arises:
• Export of Goods or services
• Supplies to SEZs units and developers
• Deemed Export supplies
• Refund of taxes on purchase made by UN or embassies etc
• Refund arising on account of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court.
• Refund of accumulated Input Tax Credit on account of inverted duty structure
• Finalisation of provisional assessment
• Refund of pre-deposit
• Excess payment due to mistake
• Refunds to International tourists of GST paid on goods in India and carried abroad at the time of their departure from India
• Refund on account of issuance of refund vouchers for taxes paid on advances against which goods or services have not been supplied
• Refund of CGST & SGST paid by treating the 283 supply as intra-State supply which is subsequently held as inter-State supply and vice versa.
GST Refund Procedure:
For the taxpayers seeking the GST refund, a set application is to be followed. Let us have a look at the GST refund procedure below:
They need to file form RFD-01 which needs to be certified by an authorized Chartered Accountant within 2 years of the relevant date. The relevant date differs from case to case. The cases are defined below:
• For goods exported through air or sea: When the aircraft/ship leaves the Indian borders.
• For goods transported through land: When the goods cross the land frontier of the country.
• For goods transported via post: The dispatch date of goods from the post office.
• For services (when the services are completed before the payment): Relevant date is the payment receipt date.
• For services (when payment is made in advance): Relevant date is the invoice date.
• For excess unutilised ITC: Relevant date will be the end of the same financial year.
• For deemed exports/ supply to SEZ/ 100% EOU: Relevant date will be the return filing date.
• When the order is passed in favour of the appellant: Relevant date is the date of that order.
• For following a provisional assessment: The date at which such tax was adjusted.
• Refund for non-suppliers: Relevant date is the date at which the goods are received.
• For every other case, the relevant date will be the date of payment of the tax.
After the application is filled by the taxpayer, the details and the acknowledgement will be auto-generated in Form RFD-02. The same will be forwarded via an email and an SMS for future references to the applicant.
In case of any faults, shortcomings or shortages in the GST refund application then the applicant is required to file Form RFD-03 which will be sent to them for correcting their application.
Note: There shall be no refunds where the amount of refund is less than Rs. 1,000/-
Other forms that are important for refund claims:
• RFD-07: this is a show cause notice for complete rejection of a refund application
• RFD-08: Payment advice
• RFD-09: In case of delayed payments, this is an order for interest on late payments.
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